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HomeMy WebLinkAboutSingle Audit Report June 30, 2009 SINGLE AUDIT REPORTING PACKAGE Year Ended June 30, 2009 TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE YEAR ENDE June 30, 2009 CONTENTS Page Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 3 Independent auditor’s Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 5 Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 10 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Council Town of Marana, Arizona We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, Arizona (the “Town”), as of and for the year ended June 30, 2009, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated January 27, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Town’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Town’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Town’s financial statements that is more than inconsequential will not be prevented or detected by the Town of Marana’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Town’s internal control. ZZZKHQU\DQGKRUQHFRP The Honorable Mayor and Council Town of Marana, Arizona Page Two Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Town Council, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Casa Grande, Arizona January 27, 2010 4 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Honorable Mayor and Council Town of Marana, Arizona Compliance We have audited the compliance of the Town of Marana (the “Town”), Arizona with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2009. The Town’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Town’s management. Our responsibility is to express an opinion on the Town’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assur- ance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Town’s compliance with those requirements. In our opinion, the Town of Marana, Arizona, complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2009. ZZZKHQU\DQGKRUQHFRP The Honorable Mayor and Council Town of Marana, Arizona Internal Control Over Compliance The management of the Town of Marana, Arizona is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the Town’s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over compliance. A control deficiency in an entity’s internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity’s internal control. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town, as of and for the year ended June 30, 2009, and have issued our report thereon dated January 27, 2010. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The Honorable Mayor and Council Town of Marana, Arizona This report is intended solely for the information and use of the Town Council, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Casa Grande, Arizona January 27, 2010 7 TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2009 Federal Grantor / CFDAGrantor's Pass-Through Grantor / Program TitleNumberNumberExpenditures U.S. Department of Agriculture Passed through Arizona State Forestry Division - Cooperative Forestry Assistance10.664CCG-08-0062,700 U.S. Department of Housing and Urban Development Passed through Pima County - Community Development Block Grant 2006-200714.21801-70-M-138937-100611,377 Community Development Block Grant 2007-200814.21801-70-M-140542-100715,420 Community Development Block Grant 2008-200914.21801-70-M-141622-100830,000 Total U.S. Department of Housing and Urban Development56,797 U.S. Department of Transportation Direct Grant - Airport Improvement Program20.106AIP 3-04-0058-14751,188 * Airport Improvement Program20.106AIP 3-04-0058-16 111,240* Airport Improvement Program20.106AIP 3-04-0058-17 65,090* Total U.S. Department of Transportation 927,518 U.S. Department of Homeland Security Passed through Arizona Department of Homeland Security - Homeland Security Grant Program97.067444416-01, 444416-02131,770 Total Expenditures of Federal Awards $1,118,785 *Denotes major program See accompanying notes to the schedule. TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2009 NOTE 1 - BASIS OF PRESENTATION TheScheduleofExpendituresofFederalAwardsincludesthefederalactivityofTownofMarana,Arizona andispresentedonthemodifiedaccrualbasisofaccounting.Theinformationinthisscheduleis presentedinaccordancewiththerequirementsofOMBCircularA-133,AuditsofStates,Local Governments and Non-Profit Organizations. NOTE 2 - CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS TheprogramtitlesandCFDAnumberswereobtainedfromthefederalorpass-throughgrantororthe2009 CFDA catalog. TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2009 Summary of Auditors’ Results 1. The auditor’s report expresses an unqualified opinion on the financial statements of Town of Marana. 2. No significant deficiencies relating to the audit of the financial statements are reported. 3. No instances of noncompliance material to the financial statements of the Town of Marana were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs are reported. 5. The auditor’s report on compliance for U.S. Department of Transportation Airport Improvement grants expresses an unqualified opinion. 6. The audit disclosed no findings that are required to be reported in accordance with Section 510(a) of OMB Circular A-133. 7. The programs tested as major programs include U.S. Department of Transportation Airport Improvement grants (CFDA 20.106). 8. The threshold used for distinguishing between Type A and B programs was $300,000. 9. Town of Marana qualified as a low-risk auditee. 10. There were no prior year findings.